Uruguay buys back $116 million bonds in tender for notes

New York, Dec. 10 - Uruguay said it received tenders from holders of $116 million of securities in its cash tender offer for 10 series of international bonds denominated in dollars and euros and tenders from holders of $124 million of bonds in an offer for 24 series of domestic bonds denominated in dollars and Unidad Indexada (UIs).

The dollar-denominated international bonds eligible for the offer were Uruguay's 7% bonds due 2008, 7 7/8% bonds due 2008, 7 7/8% bonds due 2009, 7¼% bonds due 2009, 8¾% bonds due 2010, 7¼% bonds due 2011, 8 3/8% bonds due 2011 and 7 5/8% bonds due 2012. The euro-denominated bonds were Uruguay's 7% bonds due 2011 and 7% bonds due 2012.

The domestic bonds covered by the offer were detailed in a Spanish-language document made available in Uruguay, according to a previous news release.

The country said that it accepted tenders for none of the 7% bonds due 2008, $3.99 million of 7 7/8% bonds due 2008, $270,000 of 7 7/8% bonds due 2009, $2 million of 7¼% bonds due 2009, $528,000 of 8¾% bonds due 2010, $80.8 million of 7¼% bonds due 2011, $1.97 million of 8 3/8% bonds due 2011, $1.6 million of 7 5/8% bonds, €3.13 million of 7% bonds due 2011 and €14.01 million of bonds due 2012.

The total outstanding principal amount of international bonds was equivalent to $436 million, and the total outstanding principal amount of local bonds was equivalent to $1.55 billion.

Uruguay said it could choose to prorate one or more series of bonds if the total principal amount of bonds tendered exceeded the equivalent of $200 million.

The payout for each series of international bonds will be determined using the dollar swap rate or euro swap rate, as applicable, plus a fixed spread of 25 basis points for the 7% bonds due 2008, 30 bps for the 7 7/8% bonds due 2008, 40 bps for the 7 7/8% bonds due 2009, 50 bps for the 7¼% bonds due 2009, 80 bps for the 8¾% bonds due 2010, 85 bps for the 7¼% bonds due 2011, 90 bps for the 8 3/8% bonds due 2011 and 7 5/8% bonds due 2012, 95 bps for the 7% bonds due 2011 and 90 bps for the 7% bonds due 2012.

The offer ended at 1 p.m. ET on Dec. 7.

Settlement is expected to occur on Dec. 17. The offer began on Dec. 3.

Citi is the dealer manager, and Bondholder Communications Group, LLC (888 385-2663, 212 809-2663 or +44 20 7382 4580) is the information and tender agent.

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